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Current Ratio Formula

GoBusiness Current Ratio Formula

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The Current Ratio helps you to determine if you have enough working capital to meet your short term financial obligations. Check FAQs

CR = \frac{CA}{CL}

CR - Current Ratio?CA - Current Assets?CL - Current Liabilities?

Current Ratio Example

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Here is how the Current Ratio equation looks like with Values.

Here is how the Current Ratio equation looks like with Units.

Here is how the Current Ratio equation looks like.

2.65 = \frac{79500}{30000}

2.65 = \frac{79500}{30000}

2.65 = \frac{79500}{30000}

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Current Ratio Solution

Follow our step by step solution on how to calculate Current Ratio?

FIRST Step Consider the formula

CR = \frac{CA}{CL}

Next Step Substitute values of Variables

∴

CR = \frac{79500}{30000}

Next Step Prepare to Evaluate

∴

CR = \frac{79500}{30000}

LAST Step Evaluate

∴

CR = 2.65

Current Ratio Formula Elements

Variables

Current Ratio

The Current Ratio helps you to determine if you have enough working capital to meet your short term financial obligations.

Symbol: CR

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Current Ratio

Current Assets

Current assets are balance sheet accounts that represent the value of all assets that can reasonably expect to be converted into cash within one year.

Symbol: CA

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Current Assets

Current Liabilities

Current Liabilities are the company debts or obligations that are due within one year.

Symbol: CL

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Current Liabilities

Other Formulas to find Current Ratio

Go Business Current Ratio

CR = \frac{CA}{CL}

Other formulas in Liquidity Ratios category

Go Free Cash Flow

FCF = CFO - CAPEX

Go Free Cash Flow to Firm

FCFF = CFO + (Int \cdot (1 - tax)) - CAPEX

Go Debt to Assets Ratio

DA = \frac{TL}{TA}

Go Debt to Equity Ratio

R D/E = \frac{TL}{TSE} \cdot 100

How to Evaluate Current Ratio?

Current Ratio evaluator uses Current Ratio = Current Assets/Current Liabilities to evaluate the Current Ratio, The current ratio helps you to determine if you have enough working capital to meet your short term financial obligations. Current Ratio is denoted by CR symbol.

How to evaluate Current Ratio using this online evaluator? To use this online evaluator for Current Ratio, enter Current Assets (CA) & Current Liabilities (CL) and hit the calculate button.

FAQs on Current Ratio

What is the formula to find Current Ratio?

The formula of Current Ratio is expressed as Current Ratio = Current Assets/Current Liabilities. Here is an example- 2.65 = 79500/30000.

How to calculate Current Ratio?

With Current Assets (CA) & Current Liabilities (CL) we can find Current Ratio using the formula - Current Ratio = Current Assets/Current Liabilities.

What are the other ways to Calculate Current Ratio?

Here are the different ways to Calculate Current Ratio-

Current Ratio=Current Assets/Current Liabilities

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Current Ratio Formula

​GoBusiness Current Ratio Formula

Current Ratio Example

Current Ratio Solution

Current Ratio Formula Elements

Other Formulas to find Current Ratio

Other formulas in Liquidity Ratios category

How to Evaluate Current Ratio?

FAQs on Current Ratio

Variable Name

GoBusiness Current Ratio Formula